Part I: Multiple Choices: Choose The Best Answer From The Given Alternatives. (1.5 26 39 PTS.)
Part I: Multiple Choices: Choose The Best Answer From The Given Alternatives. (1.5 26 39 PTS.)
Part I: Multiple Choices: Choose The Best Answer From The Given Alternatives. (1.5 26 39 PTS.)
(1.5*26= 39 pts.)
1. ______are types of commercial banks with no intension to lend their funds for a long
period of time.
A) Industrial banks C) Deposit banks
B) Saving banks D) Agricultural banks E) None
2. Which one is incorrect about industrial banks?
A) They buy shares and debentures of companies
B) They underwrite the debentures and shares of big industrial concerns.
C) They accept long term deposits. D) All E) None
3. Identify the odd statement (s) about agricultural banks.
A) They do not work on the principle of maximum profit for the shareholders.
B) They organized on co-operative lines.
C) They meet the credit requirements of the farmers through term loans.
D) They established to encourage thrift among small savers. E) None
4. All of the followings are true about demand deposit except________.
A) These deposits can be withdrawn at any time.
B) These deposits are kept by businessmen and industrialists who receive and make large
payments through banks.
C) There is a restriction on the amount that can be withdrawn at a particular time.
D) Cheques are used to withdraw the amount. E) None
5. _____ is a type of primary function of commercial banks in which it is repayable by
installment basis.
A) Consumer credit C) Term loan
B) Overdraft facility D) Cash credit E) All
6. If Awash International Bank and Dashen Bank grant loan jointly against common
collateral it is termed as:
A) Money at call C) Overdraft facility
B) Term loan D) Cash credit E) None
7. Assume that Mr. John has only Br.4000 on his saving account with Commercial Bank of
Ethiopia and he agreed to with draw Br.8000 since he is active customer. Assume that
interest rate of commercial bank on lending activity is 5%. What is the amount of
principal and interest that Mr. John has submitted at the due date?
A) Br. 8400 C) Br. 4600
B) Br. 4200 D) Br. 8600 E) None
8. All of the following bank’s functions can be listed under agency services except ____.
A) Collection and payment of cheques, bills of exchange and promissory notes on behalf
of their customers.
B) Purchase and sell shares, stocks, bonds, debentures on behalf of their name.
C) Acting as representative and correspondents of their customers. D) All E) None
Column “A”
1. Banker is a debtor
2. Licenser and licensee relationship
3. Trustee and beneficiary relationship
4. Banker is a creditor
5. Bailor and Bailee relationship
6. Garnishee order
Column “B”
A) Agreement to deliver property to another.
B) When current account of customer has been debited.
C) When customer owes money to banker.
D) When banker holds property on behalf of its customer.
E) Case in which the banker can refuse to honour check.
F) When deposit account of customers has a credit balance.
G) When the banker gives a sale deposit locker to customers.
H) Order in which the banker has an obligation to pay for customers.
GOOD LUCK!
3. 9. 15. 21.
1. 4.
2. 5.
3. 6.
1) _____________________________________________________
2) _____________________________________________________
3) _____________________________________________________
4) _____________________________________________________
5) _____________________________________________________
6) _____________________________________________________